March 4, 2024

Bahamas regulator: We hold $3.5 billion of FTX client funds

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Bahamas regulator: We hold $3.5 billion of FTX client funds

Bahamas Securities Commissionislands (SCB) reported that it controls the assets of the FTX exchange and its subsidiaries in the amount of $3.5 billion. These are mainly user deposits.

The regulator's statement claims that the funds were transferred to SCB wallets on November 12. At the same time, the freezing of funds from the FTX exchange was reported
the day before, November 11th.Also at this time, assets worth over $300 million were withdrawn by the FTX liquidation commission. Unknown hackers (or insiders) managed to withdraw approximately the same amount to their wallets. In this connection, American regulators began
own investigation.

The Bahamian regulator emphasizes that dataThe founders of the FTX exchange, Sam Bankman-Fried and Gary Wang, do not have access to the funds. The assets will be transferred to the liquidation commission of the exchange for distribution among affected users. SCB has confirmed that it will not seek priority payments for Bahamian residents.

“The Commission will continue to comprehensively and thoroughlyinvestigation into the causes of FTX's collapse, act in accordance with the directions of the Supreme Court of the Bahamas, cooperate with other supervisory authorities and take any necessary actions to preserve FTX's assets and protect the interests of the company's clients and creditors," SCB Director Christina Rolle said in a statement. .

It was previously reported that FTX co-founder Sam Bankman-Fried is ready to officially plead guilty to criminal charges of defrauding investors and stealing client funds.